Bangkok Office Space Remains In Demand

13 ธ.ค. 2560

Bangkok Office Space Remains In Demand

Companies in Bangkok are looking to buy office space as opposed to renting it. This is due to the fact that office rental rates continue to rise and show no sign of stabilising. However, there is currently a lack of suitable office space available for sale in the city, according to JLL.

“Generally, companies prefer a rental option, which offers more flexibility than ownership. As office lease agreements in Bangkok are typically on a 3 year term with an option for renewal, tenants have the flexibility to move whenever they want with less difficulty than if they own the premises,” says Yupa Sathienpabayut, Director of Office Leasing at JLL, to the Bangkok Post.

Office rents in Bangkok have increased for 7 years in a row and this trend is expected to continue moving forward. Several companies are now looking for an opportunity to acquire strata office space for private ownership in order to prevent rents from going up.

“The top factor encouraging companies to buy office space is the better security of tenure that helps protect against rental escalation, particularly when the office market is on the upturn of the market cycle,” says Yupa.

Of the businesses looking to buy office space, most are seeking strata office units sized between 400 and 2,000 square meters in centrally located buildings. This is a problem because there isn’t a great deal of office supply for sale that meets these criteria.

This has seen companies consider buying smaller, stand-alone office buildings. These buildings may not always be centrally located, but they give owners a chance to have full control over their real estate. In many cases businesses are able to refurbish the building so it meets their specific business and operational needs.

“After all, any real estate option has its own pros and cons. Companies must weigh advantages and disadvantages of each option against their long-term business goals, based on adequate, accurate information about the specific property they want to invest in and the Bangkok office market,” says Yupa.

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